Pick of the Week – City of Waconia

With Taste of Minnesota moved to Waconia due to flooding, perhaps it’s a good opportunity to offer up a taste of the Waconia housing market. Inventory has been in the spotlight lately, so let’s look at the number of active listings in Waconia. Overall inventory levels have increased 5.7% from last year. It’s important to dig beyond the headline numbers and kick over some stones to see what lies beneath. Looking at the chart, the number of previously-owned properties on the market in Waconia has risen 13.6% from the same period last year. During that time, new construction inventory levels have fallen 21.9% though they’re still above their valley reached in late-2011. Encouraged by recent price increases, rising rents and an improved economy, existing homeowners are more eager to list their homes for sale. Homebuilders are more risk-averse, new construction inventory appears tepid but stable. That’s likely to change as population levels continue to grow and inventory remains tight—though there are signs that’s improving throughout the Twin Cities metro area.